Starting July 1, pickups no longer exempt from excise tax
The Bureau of Internal Revenue (BIR) reminded automobile buyers that pickups are again subject to excise tax.
This started on July 1, when the Capital Market Efficiency Promotion Act (CMEPA) went into force.
Section 18 of CMEPA amended the provision of the National Internal Revenue Code that exempts pickups, along with purely electric vehicles, from the tax that reaches up to 50 percent, depending on the net selling price of the unit.
The NIRC recognized pickups as trucks, which are considered commercial vehicles.
With this change in the Code, the relevant part of Section 149 of the code now reads: “… That purely electric vehicles shall be exempt from excise tax on automobiles.”
Thus, “pickups are already excluded from the list of automobiles exempt from excise tax starting July 1, 2025,” BIR Commissioner Romeo Lumagui Jr. said in a public advisory.
Lumagui said all manufacturers, assemblers or importers of automobiles have been mandated to take inventory of all brands and models of pickups as of June 30.
He said this was “for purposes of verification as required under existing laws and regulations.
In particular, the concerned companies were “directed to prepare an inventory of on-hand completely built-up pickups—including completely knocked- down and semi knocked-down units that are located within the manufacturing/assembly plant, storage facility or warehouse or the customs premises.”
Also included, are those pickups that are “in transit for which import entries have been filed with the Bureau of Customs—on or before June 30.
